trading sim logo

Market Scanners – Tool for Identyfing Trading Opportunities

Jun 24, 2011

Written by:
Al Hill

Market Scanner Definition

A market scanner is a vital component to any day trading strategy.  Successful day trading comes from trading the most volatile stocks in the market.  Since day traders have only a few hours per day to trade, it is best to focus on a limited number of stocks.  Thus, market scanners provide the day trader the easel for which to paint their masterpiece.

Stock Market Scanners

Market scanners search the issues on the exchanges and return results based on user inputs.  Every trading platform comes with basic market scanners that display the greatest percentage change and high volume stocks for the day.  The ability to scan the market for specific criteria allows the day trader to focus on trading their specific edge and not manually scanning for issues.

Below are a list of criteria that day traders use to scan the market on a daily basis:

Percentage Gainers/ Losers – these are the list of stocks on the major exchanges which have the greatest change in price.

High Volume – stocks with the highest trading activity for the day

Chart Patterns – scans the market for specific chart patterns (double tops, triple bottoms, moving average crossovers, etc.)

Breakouts – stocks breaking their daily highs or lows

Tags:

Related Blogs

Rebate Trading

Rebate Trading Definition Rebate Trading is the act of buying or selling short a stock directly from an Electronic Communications Network (ECN) and receiving a rebate from the ECN for the...

Day Trading Coach – Everything You Need to Know

Day trading coach is a mentor or a coach that can help you to achieve your trading goals. A day trading coach is no different from a regular sports coach or a life coach. You would want to make use...

Day Trading Basics

Day trading stocks-Is it a real work-from-home opportunity?

Working from home during the COVID-19 pandemic Day trading stocks can be a successful way to create income- but it’s not easy. Many people want to make a profit in this bear market, but there are...

Company

Platform